Bank of America, the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Erika Najarian from UBS maintained a Buy rating on the stock and has a $55.00 price target.
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Erika Najarian’s rating is based on several key considerations regarding Bank of America’s current position and future potential. Despite recent underperformance compared to its peers, Bank of America has an opportunity to redefine its growth narrative, especially following an anticipated strong third-quarter result in 2025. The bank is expected to set Return on Tangible Common Equity (ROTCE) targets that align with or exceed current industry standards, which is crucial given the pressure on its ROTCE in recent years.
Moreover, Najarian emphasizes the importance of Bank of America addressing strategic imperatives to enhance profitability and earnings per share growth, areas where it has lagged behind peers. The report suggests that the bank should focus on improving its expense management and operating leverage to reduce share price volatility. Additionally, the succession planning for CEO Brian Moynihan is highlighted as a critical factor for investor confidence, with a need for clarity on future leadership to ensure stability and continuity.
In another report released on October 1, RBC Capital also maintained a Buy rating on the stock with a $56.00 price target.
Based on the recent corporate insider activity of 71 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BAC in relation to earlier this year.